New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-08-26
BUILDING 4 RAILROAD on CALL LOANS
TIRE EXPERIMENT NOT ACKNOWLEDGEMENTS
4 PgLI,s IIABILITIEs 81, 100000.


PELL's LIABILITIES Sl.0OOOOO.
The formal announcement that the embarrassed firm
OF GrOvesteen 4 Pel had made assignment 10 T..
W. Harding wel-knOwn member OF the board, was
mate after the opening Of business at the Stock
Exchange yesterday. It had little eject on the
Of the market because it had been made certain
by the attempted sale "undcr the rule" on Wednesday
Of a small lot OF East and West Alabama bonds for
account OF firm. While the failure was not unex.
pected the later statement by the assignee that the
liabilities would amount to abOHt Sl,ooo,oOO caused
10 little anazement
The as gnee said that until he had made further
examination OF the firms affairs he did not care TO ~
into details, but the Indebtedness was covered by
Fast and West Alabama and Rome and Decatur
bonds, and by other securities. He hoped, he said.
TO be able to make exact statement IN a Few Guys
estimate Of the liabilities was conoborated after
ward by Mr. Pcll, who refused TO say anything more
about the failure From other sources u was Learned
that the great bulk OF the Indebtedness was In the
form of call loans secured by the bonds named and
occasionally by Commercial Telegram preferred stock
and a few other things of doubtful value The East
and West Alabama bonds, which have been ruing at
about 100 for some time, did not mo u ouytr a %
Oh Wednesday and the holders will be forced 80 ac-
qurc more definite knuH ledge Of the property on
which they have loaned money. IL the crchtors
should follow the example of Ives cos crcotors
they would begin Immediately to suggest the lorna
ton of syndicate to take up the loans Tho Ilabiil.
lies are scattered widely The American Loan ANA
Trust Company, No Il3 Broadway, which Is tho
trustee OF the mOrtg gage on tho East and West IA
bama, il tho largest creditor. 1t hOlus claim VI
between T2JOOOO aud f3O0.OOO. Inc liLlH VI Tho
State Ia Interested ~ the extent Of $4,000 ana tho
National Bank OF Commerce holds a loan OF SlOooUO
The loans on the floor of &c stock Exchange, when
are generally in of 100000 or less, amount 10
about $4,000 The Chemical Bank, the ST. Nicholas
Bank and the Central Trust Company are known 10
be sma creditors and IL is said Indeed mat nearly
half the banks in the city have few OF OF pe nfn
securities. Many of the crcd ors are unwilling ones
and except ON the floor OF the eNcnanEs' ~ socdns
that lenders have been unable for some tho ~ get
President Edwards was deeply mortified by tho
Tho firm had kept account a. the bank
only since the first Of the present month,
although of the members had had
a personal account there for year or two one loan
of $40 200 was made about two weeks ago on inc
express prOml that Il 10 be taken up tic next
day and IL was understood to be merely Tor con-
venicnce In collecting the bonds which had pcch sOlu
IL was represented. through prominent Daklhg house
for foreign account The last loan or 900 OOO WA'
made after o'clock one day recently 10 prn,et uio
firms account with the bank. lf-iurht EhWaius
but accomplished nothing In the wa, OF reducing mo
Indebtedness, and Wednesday no refused 10 give
the firm further ccrtihoailOn. - -
An attempt T. being made to grant the him an
East and West Alabama bonds may be maze Many
creditors have expires sed their assent ana inc assignee
and bis attorney hope that the pan VIII DC success
full Tho bonds probably could not 10 soiu III uo
omen market, except az a los that would DC dlsh-
trous \ person who has spent t'c most OF Ms nc
I'm Wall street summed up the failure In these Wod' :
"The firm tried TO build a railroad on car Io", w.,
IT is not q good way, ana uOh rc"loinooi u" u"
stance where IL succecdtd' .-u,,,t...
IL wa rumOrcd that Jay Gould was not unwlnns
To aid the firm but the rum0r mercy sa't,u aIu.ioi
one that his object 10 secure no ,oHlmcr'ia
Telegram Company stock held hy Mr. feH Who II
vice president OF the company.